Operations and Logistics Management

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OPERATIONS AND LOGISTICS MANAGEMENT

Submit: 18/08/2008

TABLE OF CONTENTS

Introduction…………………………………………………………………………… 03

Executive Summary…………………………………………………………………… 04

Operations strategy……………………………………………………………………. 05

Operations competitive dimensions…………………………………………………… 06

Capacity……………………………………………………………………………….. 07

Location……………………………………………………………………………….. 08

Total Quality Management……………………………………………………………. 09

Flexibility……………………………………………………………………………… 11

Conclusion…………………………………………………………………………….. 12

Recommendation……………………………………………………………………… 13

References……………………………………………………………………………… 14

EXECUTIVE SUMMARY

Operations Management is concerned with the managing of resources and activities that produce and deliver goods and services for customers. Efficient and effective operations can provide an organization with major competitive advantages. As competition becomes stronger in a more open and global marketplace, a company's survival and growth become greatly dependent on its ability to run its operations efficiently and to exploit its resources productively. This essay is going to discuss about the relationship between strategy and operation management and further explaining about how the capacity, location, TQM, flexibility and process can add value to the delivery of goods and services.

There are many definitions put forward for the business processes. Business processes can be defined as structured measured set of activities designed to produce a specified output for a particular customer or market (Davenport 1993, P 5). “Rosemann (2001, P 18) defines business processes as self-contained, temporal and logical order (parallel and/or serial) of those activities, that are executed for the transformation of a business object with a goal of accomplishing a given task”. Business processes is a collection of interrelated work tasks, initiated in response to an event that achieve a specific result for the customer of the process (Portugal and Sundaram, 2005). Processes in the business under taken to achieve particular task that for example producing a particular goods or service for the customer. The result must be countable and identifiable. “The business processes is a set of clearly identifiable tasks, executed by one or more actors (person, or organisation, or machine, or department (Portugal and Sundaram, 2005). The business processes helps us to identify various tasks involved in delivering results by the organisation. Business process may be generic or particular to given industry or organisation. Processes are the methods used to convert raw materials and components into products (Hall, 2004). Processes may include, designing, cutting, bending, soldering and polishing. These types of processes are mainly performed using machines and tools.

INTRODUCTION

Business today is set in a global environment. This global environment is forcing companies, regardless to their location or primary market base, to consider the rest of the world in their competitive strategy analysis. Firms cannot ignore external factors such as economic trends, competitive situations or technology innovation in other countries if some of their competitors are competing or are located in these countries. Nowadays, it is uncommon for a company to develop a new product in the United States, manufacture it in Asia and sell it in Europe. (Gourdin, 2006 P 140)

IKEA offers its customers with wide range of products at reasonable prices so that more and more people can afford them. IKEA produces its own goods as well as buy from other companies. The company follows cost effective process to deliver the best to the customers. Company looks through all the available raw materials available throughout the world and selects the suitable raw material. Company buys its raw material throughout the world and they buy it in the bulk. So that customers can benefit from cost effective production process. IKEA product...
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